hoping we get update thismorningBut looks like good news
Midwestern Finally Buys Mart Resources-At A Steep Discount
Nigerian Independent, Midwestern Oil and Gas has finally acquired its partner, the Canadian explorer Mart Resources. The operator of the Umusadege oil field completed the several month long transaction in a deal worth less than $300Million. Mart Resources had asked for far more; over $400 Million. It is not clear if that means that Midwestern will separately pay off Mart Resources’ debt in Oil Mining Lease (OML) 18, in which they are both partners.
This development updates Mart Resources’ last statement that Midwestern Oil and Gas Company Limited had until August 26, 2015 to complete the acquisition of all of the common shares of Mart, but couldn’t complete the purchase.
Midwestern’s ‘swallow’ of Mart Resources, which has a 50% beneficial entitlement in Umusadege field, caps an 18 month long string of achievements for Midwestern, including completion of an alternative crude oil evacuation pipeline that enables it to switch anytime there’s vandalism on one pipeline; a steep increase in production from less than 12,000BOPD to between 18 and 19,000BOPD; completion of purchase of sizeable (though undisclosed) interest in OML 18. Further updates on this transaction will be provided here.